Oil and gas whipsawed in post-settlement trading as US President Donald Trump extended a ceasefire with Iran even as peace talks falter and a blockade of the Strait of Hormuz keeps flows locked up.

Oil held gains post-settlement after Trump said Tuesday that the US would hold off on fresh attacks on Iran but that a naval blockade of the vital shipping route would continue until “discussions are concluded, one way or the other.”

Prices had been volatile amid rapidly shifting expectations around the trajectory of the now seven-week old conflict and what it means for Hormuz, a chokepoint about a quarter of the world’s seaborne oil trade.

Brent, the global benchmark, briefly surged above $100 a barrel in post-settlement trading and European gas rose as much as 10.4% after the AP reported that US Vice President JD Vance has scrapped a trip to Islamabad for peace talks. That came as Iranian media reported that the country informed the US via Pakistan that it won’t attend the talks.

The negotiations had been seen as an eleventh-hour chance for de-escalation before the two-week truce ends on Wednesday, and to clarify whether oil tankers will soon be able to transit the strait. The two sides have a host of unresolved issues, including the Islamic Republic’s nuclear capabilities and Israel’s invasion of Lebanon.

Iran has maintained a tight grip on traffic through the strait and the US naval blockade aims to cripple Iran’s economy by halting its oil and gas exports.

Both warring parties have claimed that the other violated terms of the ceasefire leaving oil traders bullish and without much conviction a deal is around the corner.

The impact of the Iran war will continue for months even after any deal to restore shipping through Hormuz, the world’s largest oil traders have warned. Some said flows through the waterway may never return to normal.

What do you think? We’d love to hear from you, join the conversation on the

Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.

This article was automatically fetched from an external source.